President Obama Sums Up 2014

U.S. President Barack Obama reacts after tweeting at his first ever Twitter Town Hall in the East Room at the White House in Washington, July 6, 2011. REUTERS/Larry Downing President Barack Obama held his year-end press conference on Friday afternoon and said he believed Sony made a "mistake" by canceling the release of "The Interview" in the wake of a hack that has been linked to North Korea.

"I am sympathetic to the concerns they faced," said Obama who noted the company faced "significant damage" from the hack. "Having said all that, I think they made a mistake."

This was the first time Obama publicly weighed in on the Sony hack, which the FBI linked to North Korea on Friday morning. The hackers released statements saying the objected to the portrayal of North Korean leader Kim Jong Un in the movie.

"I wish they had spoken to me first," Obama said of Sony. "I would have told them do not get into a pattern where your intimidated by these kinds of criminal attacks."

He discouraged other company's facing similar threats from caving to that pressure.

"Let's not get into that way of doing business," said Obama.

Obama was also asked if he would watch the film or perhaps screen it at the White House.

"I've got a long list of movies I'm going to be watching," Obama said. "I never release my full movie list."

Obama, who noted he "likes" the stars of "The Interview," James Franco and Seth Rogen, said the fact North Korea was concerned about a "satirical" film is telling about the state of Kim Jong Un's regime.

He was also asked about whether another country, specifically China, may have aided the hack.

"We've got no indication that North Korea was acting in conjunction with another country," said Obama.

The president said America would "respond" to the hack, which he confirmed was linked to North Korea. He said the US would react "proportionately," but noted he would not "announce" what this response would be "at a press conference."

After discussing North Korea, Obama predicted tax reform will occur in the new Congress. He described it as "one area where we can get things done." Obama also reiterated his opposition to corporate tax loopholes and inversions.

"We think it's important that everybody pays something if they are, in fact, effectively headquartered in the United States," said Obama.

He indicated Republicans "share" some of these positions. However, he declared, "The devil's in the details."

"I'll be interested in seeing what they want to move forward," Obama said.

Obama also discussed his Cuba policy shift. He noted he shares concerns of those who criticize the Cuban regime for repressing its people. Still, Obama reiterated his belief making Cuba more "open" could lead to change in the country.

"This gives us an opportunity for a different outcome," said Obama.

The president's policy change involves a resumption of diplomatic relations between the US and Cuba as well as easing of travel and commercial restrictions. He said he hopes this "chips away" at what he characterized as a "hermetically sealed society."

"Change is going to come to Cuba. It has to. They've got an economy that doesn't work," Obama said, noting Cuba has been "reliant for years" on subsidies from Russia and Venezuela.

The relationship between America and Cuba began to deteriorate in 1959 after the revolution that brought the communist regime Fidel Castro to power. The US then launched an embargo against Cuba and severed diplomatic relations in 1961. Castro retired in 2008 and his brother, Raul, is currently Cuba's president. Fidel has rarely been seen in recent years.

At his press conference, Obama was asked whether he heard anything about Fidel's health in his discussions with Cuban officials. He said Fidel was mentioned once in his phone call with Raul.

According to the president, Raul brought up his brother after Obama "delivered a fairly lengthy statement" at the beginning of their call "about how we're looking forward to a new future in the relationship between our new countries, but we're going to continue to press on issues of democracy and human rights." Obama said these comments "probably took about 15 minutes."

"At the end of my remarks, I apologized for taking such a long time," Obama explained. "I wanted to make sure that, before we engaged in the conversation, [Raul] was very clear where I stood. He said, 'Don't worry about it Mr. President, you're still a young man and you still have a chance to break Fidel's record. He once spoke for seven hours straight."

Obama noted Raul's subsequent remarks were about twice as long as his.

"I was able to say, 'Obviously, it runs in the family,'" said Obama.

Obama said this was the only time Fidel came up during the discussions. He went on to say it was unlikely he would visit Cuba or that Raul would visit the US any time soon. However, Obama noted he is a "young man" and he said expects to visit Cuba "at some point in my life."

The president also reiterated his past criticisms of the proposed Keystone XL pipeline. He argued the pipeline would take Canadian oil through the US to be exported and, as a result, would benefit Canadian companies more than the American people/

"There's no - I won't say no - There is very little impact, nominal impact, on US gas prices, what the average American consumer cares about by having this pipeline come through," Obama said.

He criticized what he described as a "tendency" to "hype" the pipeline project as a "magic formula" for the US economy.

Obama was also asked about race relations. He pointed out the topic has been very prominent in light of recent incidents in Ferguson, Missouri and New York City where protests erupted after police officer killed unarmed African American men. He said these situations created a "growing awareness" nationwide of something that has been known for a long time among communities of color.

"There are specific instances at least where law enforcement doesn't feel as if its being applied in a colorblind fashion," explained Obama.

He claimed a task force he formed following the protests would help address the problems.

"The task force that I've formed is supposed to report back to me in 90 days, not with a bunch of abstract musings about race relations, but some really concrete, practical things that police departments, law enforcement agencies can begin implementing right now," Obama said.

The president added that he thought the uproar over the recent police killings sparked a "healthy conversation."

"My intention as soon as I get those recommendations is to begin implementing them."

Before taking questions from reporters, Obama made remarks where he characterized the year as a "breakthrough" one for the country.

"In last year's final press conference, I said that 2014 will be a year of action and a breakthrough year for America," said Obama. "It has been."

Obama went on to describe signs the economy improved over the past year. He then noted the country's leadership in the effort to fight the jihadist group Islamic State (also known as ISIS), America's opposition to Russian aggression in Ukraine, and work the country has done to fight the Ebola epidemic in West Africa. Obama also discussed the withdrawal of US troops from Afghanistan and the fact more members of the military would be home this holiday season than in recent years.

The president said America has "outperformed" other countries in recovering from the economic crisis of 2008. He also said he hoped to be able to work with the Republican Congress next year.

"In terms of my own job, I'm energized. I'm excited about the prospects for the coming years," said Obama, adding, "We are better positioned than we have been in a long time."

He said the country is setting the stage for an "American moment."

At the conclusion of his press conference, Obama pointed out what he called the "general theme" of the year.

"We've gone through difficult times. It is your job press corps to report on all the mistakes that are made, the bad things that happen ... and I understand that," said Obama. "But through persistent effort and faith in the American people, things get better."

On Friday evening, Obama and his family are traveling to Hawaii for their annual holiday vacation. They are planing to remain their until after the new year.

As he left the podium, Obama wished the White House reporters "Merry Christmas" in Hawaiian.